Direct Digital Q3 revenue drops

Reuters11-07

<a href="https://laohu8.com/S/DRCT">Direct Digital</a> Q3 revenue drops

Overview

Direct Digital Q3 revenue decreased 12%, missing analyst expectations
Net loss improved but missed analyst estimates
Buy-side advertising revenue grew 7% yr/yr, driven by new verticals

Outlook

Company expects stronger Q4 compared to last year

Result Drivers

BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals
SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels
COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Miss	$7.98 mln	$22.25 mln (2 Analysts)
Q3 Net Income	Miss	-$5 mln	$435,500 (2 Analysts)
Q3 Adjusted EBITDA	Miss	-$3 mln	$576,000 (2 Analysts)
Q3 Operating Income	Miss	-$3.91 mln	-$409,000 (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for Direct Digital Holdings Inc is $6.00, about 94.6% above its November 5 closing price of $0.33

Press Release: ID:nPnc3tWNxa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2581049692?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-11-07 06:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2581049692","market":"us","top_or_hot":-1,"title":"Direct Digital Q3 revenue drops","media":"Reuters","content":"<html xmlns=\"http://www.w3.org/1999/xhtml\"><head><title><a href=\"https://laohu8.com/S/DRCT\">Direct Digital</a> Q3 revenue drops </title></head><body><p><span>Overview</span></p><ul><li><p>Direct Digital Q3 revenue decreased 12%, missing analyst expectations</p></li><li><p>Net loss improved but missed analyst estimates</p></li><li><p>Buy-side advertising revenue grew 7% yr/yr, driven by new verticals</p></li></ul><p><span>Outlook</span></p><ul><li><p>Company expects stronger Q4 compared to last year</p></li></ul><p><span>Result Drivers</span></p><ul><li><p>BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals</p></li><li><p>SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels</p></li><li><p>COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024</p></li></ul><p><span>Key Details</span></p><table><tbody><tr><td><p><span>Metric</span></p></td><td><p><span>Beat/Miss</span></p></td><td><p><span>Actual</span></p></td><td><p><span>Consensus Estimate</span></p></td></tr><tr><td><p>Q3 Revenue</p></td><td><p>Miss</p></td><td><p>$7.98 mln</p></td><td><p>$22.25 mln (2 Analysts)</p></td></tr><tr><td><p>Q3 Net Income</p></td><td><p>Miss</p></td><td><p>-$5 mln</p></td><td><p>$435,500 (2 Analysts)</p></td></tr><tr><td><p>Q3 Adjusted EBITDA</p></td><td><p>Miss</p></td><td><p>-$3 mln</p></td><td><p>$576,000 (2 Analysts)</p></td></tr><tr><td><p>Q3 Operating Income</p></td><td><p>Miss</p></td><td><p>-$3.91 mln</p></td><td><p>-$409,000 (2 Analysts)</p></td></tr></tbody></table><p><span>Analyst Coverage</span></p><ul><li><p>The current average analyst rating on the shares is \"buy\" and the breakdown of recommendations is 1 \"strong buy\" or \"buy\", 1 \"hold\" and no \"sell\" or \"strong sell\"</p></li><li><p>The average consensus recommendation for the advertising &amp; marketing peer group is \"buy\"</p></li><li><p>Wall Street's median 12-month price target for Direct Digital Holdings Inc is $6.00, about 94.6% above its November 5 closing price of $0.33</p></li></ul><p>Press Release: <span>ID:nPnc3tWNxa</span></p><p>For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.</p><p>(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)</p></body></html>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Direct Digital Q3 revenue drops</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDirect Digital Q3 revenue drops\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1032215980\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2025-11-07 06:21</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html xmlns=\"http://www.w3.org/1999/xhtml\"><head><title><a href=\"https://laohu8.com/S/DRCT\">Direct Digital</a> Q3 revenue drops </title></head><body><p><span>Overview</span></p><ul><li><p>Direct Digital Q3 revenue decreased 12%, missing analyst expectations</p></li><li><p>Net loss improved but missed analyst estimates</p></li><li><p>Buy-side advertising revenue grew 7% yr/yr, driven by new verticals</p></li></ul><p><span>Outlook</span></p><ul><li><p>Company expects stronger Q4 compared to last year</p></li></ul><p><span>Result Drivers</span></p><ul><li><p>BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals</p></li><li><p>SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels</p></li><li><p>COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024</p></li></ul><p><span>Key Details</span></p><table><tbody><tr><td><p><span>Metric</span></p></td><td><p><span>Beat/Miss</span></p></td><td><p><span>Actual</span></p></td><td><p><span>Consensus Estimate</span></p></td></tr><tr><td><p>Q3 Revenue</p></td><td><p>Miss</p></td><td><p>$7.98 mln</p></td><td><p>$22.25 mln (2 Analysts)</p></td></tr><tr><td><p>Q3 Net Income</p></td><td><p>Miss</p></td><td><p>-$5 mln</p></td><td><p>$435,500 (2 Analysts)</p></td></tr><tr><td><p>Q3 Adjusted EBITDA</p></td><td><p>Miss</p></td><td><p>-$3 mln</p></td><td><p>$576,000 (2 Analysts)</p></td></tr><tr><td><p>Q3 Operating Income</p></td><td><p>Miss</p></td><td><p>-$3.91 mln</p></td><td><p>-$409,000 (2 Analysts)</p></td></tr></tbody></table><p><span>Analyst Coverage</span></p><ul><li><p>The current average analyst rating on the shares is \"buy\" and the breakdown of recommendations is 1 \"strong buy\" or \"buy\", 1 \"hold\" and no \"sell\" or \"strong sell\"</p></li><li><p>The average consensus recommendation for the advertising &amp; marketing peer group is \"buy\"</p></li><li><p>Wall Street's median 12-month price target for Direct Digital Holdings Inc is $6.00, about 94.6% above its November 5 closing price of $0.33</p></li></ul><p>Press Release: <span>ID:nPnc3tWNxa</span></p><p>For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.</p><p>(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4009","symbol_name":"广告","start_time":0,"source_url":"https://api.refinitiv.com/data/news/v1/stories/urn:newsml:reuters.com:20251106:nL1N3WI1LL:1","article_id":"2581049692","we_media_id":"1032215980","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2581049692","pubTimestamp":1762467673,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Reuters","introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"summary":"Direct Digital Q3 revenue dropsOverviewDirect Digital Q3 revenue decreased 12%, missing analyst expectationsNet loss improved but missed analyst estimatesBuy-side advertising revenue grew 7% yr/yr, dr","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4009":"广告","DRCT":"Direct Digital Holdings, Inc."},"translate_title":"Direct Digital第三季度收入下降","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DRCT":0.9},"content_text":"Direct Digital Q3 revenue drops OverviewDirect Digital Q3 revenue decreased 12%, missing analyst expectationsNet loss improved but missed analyst estimatesBuy-side advertising revenue grew 7% yr/yr, driven by new verticalsOutlookCompany expects stronger Q4 compared to last yearResult DriversBUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticalsSELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levelsCOST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024Key DetailsMetricBeat/MissActualConsensus EstimateQ3 RevenueMiss$7.98 mln$22.25 mln (2 Analysts)Q3 Net IncomeMiss-$5 mln$435,500 (2 Analysts)Q3 Adjusted EBITDAMiss-$3 mln$576,000 (2 Analysts)Q3 Operating IncomeMiss-$3.91 mln-$409,000 (2 Analysts)Analyst CoverageThe current average analyst rating on the shares is \"buy\" and the breakdown of recommendations is 1 \"strong buy\" or \"buy\", 1 \"hold\" and no \"sell\" or \"strong sell\"The average consensus recommendation for the advertising & marketing peer group is \"buy\"Wall Street's median 12-month price target for Direct Digital Holdings Inc is $6.00, about 94.6% above its November 5 closing price of $0.33Press Release: ID:nPnc3tWNxaFor questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2581049692","isCrawlerRequest":true}